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Royal Cosun announces beet price for 2006

8 February 2007

The Board of Royal Cosun has announced an indicative beet price of € 48.25 per tonne of quota beet from the 2006 campaign. The price was announced during the meeting of the cooperative’s members’ council in Nijkerk.
 
Cosun has not yet set a definite price. The acquisition of CSM Suiker has still to be completed. The Netherlands Competition Authority (NMa) is still studying the parties’ licence application. The definite price is expected to be announced in early April.
 
The indicative price for current Cosun members of € 48.25 per tonne excluding VAT is payable for beet with average extractability and average sugar content. The price for the 2005 campaign had been € 51.72 per tonne. The average sugar content (16.4%) was lower in 2006 than in the previous year (16.9%).
 
The growing season was characterised by extremes: very high summer temperatures and heavy rainfall in August. Healthy late growth in the autumn resulted in an average sugar yield of 11.1 tonnes per hectare, equal to € 3,067 per hectare (2005: € 3,172).
 
The beet price for 2006 is lower than that for 2005. The main reasons for the difference are:
 

  • Negative: the reduction in the minimum price for quota beet owing to the new sugar market organisation coming into force in mid-2006;
  • Positive: the repayment of the B levy and part of the basic levy from the previous campaign;
  • And equally positive: the profitability of the other activities.
Despite a lower result at Suiker Unie, the members’ bonus is comparable to that for previous years. This is attributable to the improvement in results at the other business groups.


The price for surplus beet with average sugar content and average extractability is € 19.38 per tonne. Sugar from the surplus beet will remain within the EU for use chiefly in non-food applications such as bio-ethanol. The price for C beet in the previous year had been € 16.85 per tonne.
 
The table below shows the harvest and sugar production figures for 2006 in comparison with 2005 (between brackets):
 

 

Total beet production 3,468,000 (3,791,000) tonnes
Total sugar production 537,000 (599,000) tonnes
– of which quota sugar 515,000  (469,000) tonnes

 


Cosun will publish its results for the past financial year on 17 April.